9.7 C
Alba Iulia
Thursday, April 2, 2020

Wood to sell nuclear business for £250m

Subscribe to our newsletter

We will never spam , sell or share your details

John Wood Group PLC is to sell its nuclear business to a subsidiary of Jacobs for a cash consideration of £250 million (around $305 million) representing a multiple of approximately 12.4x based on 2018 EBITDA of £20.2 million ($26.3 million).

Closing is conditional upon, among other things, obtaining anti-trust clearance from the Competition and Markets Authority (“CMA”) and is currently anticipated before the end of Q1 2020.  Both parties have agreed that Jacobs will pay a fee of £7.5 million (over $9 million) to Wood in certain circumstances where the transaction is not cleared by the CMA. The cash proceeds from the divestment will be used to reduce debt and will enable Wood to take a significant step towards achieving its target leverage policy.

David Kemp, Wood’s Chief Financial Officer, said: “The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood’s target leverage policy. Although our nuclear business is a strong UK player and has performed well, we see better opportunities to develop clear global leadership positions across other parts of our business.” 

The Wood nuclear business designs, delivers and maintains strategic and complex nuclear assets for customers primarily in the UK. In 2018, the profit before tax for the year amounted to $14.2 million and gross assets at year-end amounted to $464 million.

Advertisement
Aberdeen
clear sky
2.8 ° C
4.4 °
1.1 °
48 %
5.7kmh
0 %
Thu
3 °
Fri
6 °
Sat
8 °
Sun
11 °
Mon
11 °

Follow Us

Our Other Titles

The Oil & Gas Technology Centre brings...

THE Oil & Gas Technology Centre (OGTC) will launch the first of its Tech20 Virtual series tomorrow. The webinar launch marks a move by the...

Celebrate Aberdeen awards open for nominations

CELEBRATE Aberdeen organisers are to move ahead with the planning of this year’s events in the hope they will go ahead as scheduled. As a...

Wood sets out actions taken in response...

ABERDEEN-headquartered energy services firm Wood has said “employee reductions are being made” in order to tackle the effect of COVID-19 pandemic. The company has set...

Repsol Sinopec new chief executive takes up...

A NEW chief executive has today started at North Sea operator Repsol Sinopec Resources UK. Jose Luis Munoz, a long-time employee of Spain’s Repsol, replaces...

More Articles Like This